Is the worst behind us? Here’s what’s next for gold price
(Kitco News) Is gold ready for a new rally? After losing more than $200 since the start of the year, gold may have finally found its bottom – Monday's 10-month low.
This is definitely the theme from this week's top 3 stories, with key figures in the gold space calling for higher prices to come.
- Goehring & Rozencwajg Associates still calling for $15,000 dollar gold before this bull cycle is over, expecting a full turnaround in the second half of the year. Frustrated gold investors need to look at the gold-oil ratio when determining price reversals. This means that gold will stop falling when it becomes less expensive relative to oil. What needs to happen is for the ratio to move back to around 15 from the current levels in the upper 20s.
- DoubleLine CEO Jeffrey Gundlach is no longer just neutral on gold, saying that the precious metal is done falling after hitting a 10-month low on Monday. Gold's fair value is at $1,761 an ounce, he said, which gives the precious metal some room to the upside.
- Barrick Gold CEO Mark Bristow said that another spike in gold “is coming.” This headline comes from Bristow’s keynote presentation from the world’s largest mining conference PDAC, which was held virtually this year. Bristow said there is an "over-exuberance" in the financial markets right now with investors desperately piling into assets that don't have any real value. This kind of behavior led to a major crash in the past and it will happen again, he said, adding that there is another spike in the gold price coming.